

Condensed Consolidating Balance Sheet
June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	443,987	$	16,339	$	—		$	460,326
Accounts receivable, net	601,098		44,738		(43,486		)	602,350
Inventories	1,190,503		1,470		—			1,191,973
Income taxes receivable	1,428		—		—			1,428
Prepayments and other	42,199		1,652		(6,165		)	37,686
Total current assets	2,279,215		64,199		(49,651		)	2,293,763

Properties, plants and equipment, net	3,320,339		1,347,276		(224,057		)	4,443,558
Intangibles and other assets	2,411,622		493,476		616			2,905,714
Total assets	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,036,693	$	15,928	$	(43,486	)	$	1,009,135
Income tax payable	24,427		—		—			24,427
Accrued liabilities	161,371		31,680		(6,165		)	186,886
Total current liabilities	1,222,491		47,608		(49,651		)	1,220,448

Long-term debt	991,212		1,236,739		—			2,227,951
Liability to HEP	202,382		—		(202,382		)	—
Deferred income taxes	744,401		649		—			745,050
Other long-term liabilities	146,718		61,312		(528		)	207,502

Investment in HEP	151,055		—		(151,055		)	—
Equity – HollyFrontier	4,552,917		466,113		(405,127		)	4,613,903
Equity – noncontrolling interest	—		92,530		535,651			628,181
Total liabilities and equity	$	8,011,176	$	1,904,951	$	(273,092	)	$	9,643,035



Condensed Consolidating Balance Sheet
December 31, 2016	HollyFrontier Corp. Before Consolidation of HEP		HEP Segment		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	706,922	$	3,657	$	—		$	710,579
Marketable securities	424,148		—		—			424,148
Accounts receivable, net	487,693		50,408		(58,902		)	479,199
Inventories	1,134,274		1,402		—			1,135,676
Income taxes receivable	68,371		—		—			68,371
Prepayments and other	37,379		1,486		(5,829		)	33,036
Total current assets	2,858,787		56,953		(64,731		)	2,851,009

Properties, plants and equipment, net	2,874,041		1,365,568		(231,161		)	4,008,448
Intangibles and other assets	2,077,683		497,966		555			2,576,204
Total assets	$	7,810,511	$	1,920,487	$	(295,337	)	$	9,435,661

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	967,347	$	26,942	$	(58,902	)	$	935,387
Accrued liabilities	115,878		37,793		(5,829		)	147,842
Total current liabilities	1,083,225		64,735		(64,731		)	1,083,229

Long-term debt	991,225		1,243,912		—			2,235,137
Liability to HEP	208,603		—		(208,603		)	—
Deferred income taxes	619,905		509		—			620,414
Other long-term liabilities	132,515		62,971		(590		)	194,896

Investment in HEP	136,435		—		(136,435		)	—
Equity – HollyFrontier	4,638,603		454,803		(412,012		)	4,681,394
Equity – noncontrolling interest	—		93,557		527,034			620,591
Total liabilities and equity	$	7,810,511	$	1,920,487	$	(295,337	)	$	9,435,661



Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	3,442,999		$	109,143		$	(93,278	)	$	3,458,864
Operating costs and expenses:
Cost of products sold	2,828,274			—			(74,834		)	2,753,440
Lower of cost or market inventory valuation adjustment	83,982			—			—			83,982
Operating expenses	299,239			34,097			(17,684		)	315,652
General and administrative	56,941			2,615			20			59,576
Depreciation and amortization	89,311			19,541			(3,570		)	105,282
Goodwill and asset impairment	19,247			—			—			19,247
Total operating costs and expenses	3,376,994			56,253			(96,068		)	3,337,179
Income from operations	66,005			52,890			2,790			121,685
Other income (expense):
Earnings of equity method investments	26,949			4,053			(26,949		)	4,053
Interest expense	(13,393		)	(13,645		)	(2,431		)	(29,469		)
Other, net	9,710			90			—			9,800
	23,266			(9,502		)	(29,380		)	(15,616		)
Income before income taxes	89,271			43,388			(26,590		)	106,069
Income tax expense	31,868			128			—			31,996
Net income	57,403			43,260			(26,590		)	74,073
Less net income (loss) attributable to noncontrolling interest	(4		)	1,521			14,789			16,306
Net income attributable to HollyFrontier stockholders	$	57,407		$	41,739		$	(41,379	)	$	57,767
Comprehensive income attributable to HollyFrontier stockholders	$	68,062		$	41,690		$	(41,324	)	$	68,428



Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	2,699,069		$	94,896		$	(79,327	)	$	2,714,638
Operating costs and expenses:
Cost of products sold		2,321,919			—			(73,764		)	2,248,155
Lower of cost or market inventory valuation adjustment		(138,473		)	—			—			(138,473		)
Operating expenses		226,835			29,212			(4,711		)	251,336
General and administrative		26,793			2,862			—			29,655
Depreciation and amortization		78,686			15,308			(3,571		)	90,423
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		3,169,844			47,382			(82,046		)	3,135,180
Income (loss) from operations		(470,775		)	47,514			2,719			(420,542		)
Other income (expense):
Earnings of equity method investments		25,096			3,623			(25,096		)	3,623
Interest expense		(339		)	(11,164		)	(2,221		)	(13,724		)
Other, net		127			1			—			128
		24,884			(7,540		)	(27,317		)	(9,973		)
Income (loss) before income taxes		(445,891		)	39,974			(24,598		)	(430,515		)
Income tax expense (benefit)		(38,098		)	53			—			(38,045		)
Net income (loss)		(407,793		)	39,921			(24,598		)	(392,470		)
Less net income (loss) attributable to noncontrolling interest		(9		)	2,355			14,552			16,898
Net income (loss) attributable to HollyFrontier stockholders		$	(407,784	)	$	37,566		$	(39,150	)	$	(409,368	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(397,364	)	$	37,510		$	(39,095	)	$	(398,949	)



Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2017		HollyFrontier Corp. Before Consolidation of HEP				HEP Segment				Consolidations and Eliminations				Consolidated
	(In thousands)
Sales and other revenues		$	6,507,042			$	214,777			$	(182,472	)		$	6,539,347
Operating costs and expenses:						—
Cost of products sold		5,538,303				—				(143,706		)		5,394,597
Lower of cost or market inventory valuation adjustment		95,805				—				—				95,805
Operating expenses		593,396				66,586				(37,213		)		622,769
General and administrative		111,397				5,249				—				116,646
Depreciation and amortization		170,511				37,914				(7,103		)		201,322
Goodwill and asset impairment		19,247				—				—				19,247
Total operating costs and expenses		6,528,659			—	109,749			—	(188,022		)	—	6,450,386
Income (loss) from operations		(21,617		)		105,028				5,550				88,961
Other income (expense):
Earnings of equity method investments		47,537				5,893				(47,537		)		5,893
Interest expense		(23,977		)		(27,082		)		(4,749		)		(55,808		)
Loss on early extinguishment of debt		—				(12,225		)		—				(12,225		)
Other, net		24,514				163				—				24,677
		48,074				(33,251		)		(52,286		)		(37,463		)
Income before income taxes		26,457				71,777				(46,736		)		51,498
Income tax expense		14,973				234				—				15,207
Net income		11,484				71,543				(46,736		)		36,291
Less net income (loss) attributable to noncontrolling interest		(14		)		3,837				20,169				23,992
Net income attributable to HollyFrontier stockholders		$	11,498			$	67,706			$	(66,905	)		$	12,299
Comprehensive income attributable to HollyFrontier stockholders		$	19,671			$	67,695			$	(66,894	)		$	20,472



Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2016		HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues		$	4,698,766		$	196,906		$	(162,310	)	$	4,733,362
Operating costs and expenses:
Cost of products sold		4,024,987			—			(151,669		)	3,873,318
Lower of cost or market inventory valuation adjustment		(194,594		)	—			—			(194,594		)
Operating expenses		455,919			56,968			(8,968		)	503,919
General and administrative		49,323			5,953			—			55,276
Depreciation and amortization		154,107			31,337			(7,141		)	178,303
Goodwill and asset impairment		654,084			—			—			654,084
Total operating costs and expenses		5,143,826			94,258			(167,778		)	5,070,306
Income (loss) from operations		(445,060		)	102,648			5,468			(336,944		)
Other income (expense):
Earnings of equity method investments		50,893			6,388			(50,893		)	6,388
Interest income (expense)		369			(21,587		)	(4,518		)	(25,736		)
Loss on early extinguishment of debt		(8,718		)	—			—			(8,718		)
Other, net		200			(7		)	—			193
		42,744			(15,206		)	(55,411		)	(27,873		)
Income (loss) before income taxes		(402,316		)	87,442			(49,943		)	(364,817		)
Income tax expense (benefit)		(15,886		)	149			—			(15,737		)
Net income (loss)		(386,430		)	87,293			(49,943		)	(349,080		)
Less net income (loss) attributable to noncontrolling interest		(16		)	7,282			31,769			39,035
Net income (loss) attributable to HollyFrontier stockholders		$	(386,414	)	$	80,011		$	(81,712	)	$	(388,115	)
Comprehensive income (loss) attributable to HollyFrontier stockholders		$	(376,405	)	$	79,777		$	(81,479	)	$	(378,107	)



Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2017	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	420,404		$	113,597		$	(60,603	)	$	473,398

Cash flows from investing activities
Additions to properties, plants and equipment	(116,526		)	—			—			(116,526		)
Additions to properties, plants and equipment – HEP	—			(20,524		)	—			(20,524		)
Purchase of PCLI, net of cash acquired	(870,627		)	—			—			(870,627		)
Purchases of marketable securities	(41,565		)	—			—			(41,565		)
Sales and maturities of marketable securities	465,716			—			—			465,716
Other, net	1,152			2,289			(424		)	3,017
	(561,850		)	(18,235		)	(424		)	(580,509		)
Cash flows from financing activities
Net borrowings under credit agreements	—			290,000			—			290,000
Redemption of senior notes - HEP	—			(309,750		)	—			(309,750		)
Net proceeds from issuance of common units - HEP	—			52,634			—			52,634
Dividends	(117,754		)	—			—			(117,754		)
Distributions to noncontrolling interest	—			(115,695		)	61,919			(53,776		)
Other, net	(4,059		)	131			(892		)	(4,820		)
	(121,813		)	(82,680		)	61,027			(143,466		)

Effect of exchange rates on cash flows	324			—			—			324

Cash and cash equivalents
Increase (decrease) for the period	(262,935		)	12,682			—			(250,253		)
Beginning of period	706,922			3,657			—			710,579
End of period	$	443,987		$	16,339		$	—		$	460,326



Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016	HollyFrontier Corp. Before Consolidation of HEP			HEP Segment			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	256,019		$	104,076		$	(49,769	)	$	310,326

Cash flows from investing activities:
Additions to properties, plants and equipment	(214,660		)	—			—			(214,660		)
Additions to properties, plants and equipment – HEP	—			(75,385		)	—			(75,385		)
Purchase of equity method investment - HEP	—			(42,500		)	—			(42,500		)
Purchases of marketable securities	(86,798		)	—			—			(86,798		)
Sales and maturities of marketable securities	149,599			—			—			149,599
Other, net	390			18			—			408
	(151,469		)	(117,867		)	—			(269,336		)
Cash flows from financing activities:
Net borrowings under credit agreements	—			74,000			—			74,000
Net proceeds from issuance of senior notes - HFC	246,690			—			—			246,690
Net proceeds from issuance of term loan	350,000			—			—			350,000
Net proceeds from issuance of common units - HEP	—			13,690			—			13,690
Repayment of financing obligation	—			(39,500		)	—			(39,500		)
Purchase of treasury stock	(133,430		)	—			—			(133,430		)
Dividends	(116,795		)	—			—			(116,795		)
Distributions to noncontrolling interest	—			(93,609		)	49,769			(43,840		)
Contribution from general partner	(53,304		)	53,304			—			—
Other, net	(2,123		)	(4,225		)	—			(6,348		)
	291,038			3,660			49,769			344,467

Cash and cash equivalents
Increase (decrease) for the period:	395,588			(10,131		)	—			385,457
Beginning of period	51,520			15,013			—			66,533
End of period	$	447,108		$	4,882		$	—		$	451,990